As of mid-2025, roughly nine in ten Canadian goods entering the United States were tariff-free under CUSMA, contingent on proof that products are substantially made in Canada.

The report provides a round-up of political and economic news across Canada, spanning trade policy, energy technology, natural disasters, consumer pricing policy, and provincial dynamics.

The tariff exemption for Canada under CUSMA is under threat as the pact undergoes a 2026 review, with the United States signaling that concessions could be required and economists warning of long-term economic impacts if the exemption ends.

Canadian officials, including Prime Minister Mark Carney, have framed the exemption as a key benefit of the U.S.–Canada trade framework, even as sectoral tariffs on steel, aluminum, and agricultural goods remain in place.

Manitoba's premier signals potential measures to curb grocery prices in 2026, including addressing differential pricing and expanding milk pricing controls, with attention to online price discrimination.

Atlantic Canada continues to face power outages after weekend winds, with Environment Canada warning of gusts up to 100 km/h and thousands without electricity in the region.

Mantel Capture, a U.S. carbon-capture company, is advancing a design study for a commercial-scale project in Alberta, praising Canadian policies and local expertise as favorable to deploying emissions-reducing technology.

British Columbia’s premier says he is not seeking an early 2026 election, but warns that Conservative opposition turmoil and leadership changes could create timing uncertainty and affect legislation and services.

Industry impact remains mixed: tariffs on steel, aluminum, and softwood linger, though counter-tariffs were scaled back in 2025, easing some economic pressure.

Analysis highlights political and economic forces driving risk to the tariff exemption, including negotiations, fiscal pressures, and changes in trade policy.

U.S. tariff strategy has shown some flexibility, with reductions on certain consumer staples and signs of a softer stance amid inflation pressures, affecting Canada’s exposure as the 2026 review approaches.